Nigerian consumer credit startup CredPal has raised a $1.5million funding round. The funding came as the startup prepares to launch its credit cards for consumers in Nigeria.
This new funding was raised from YCombinator, a startup accelerator that provides seed funding to early-stage startups and Greenhouse Capital, a fintech investment holding company among other VC firms. With the funds, CredPal now plans to expand to other African markets and also add to their product list.
“With this funding, the growing market demand for consumer credit, and our recent product launch to solve these needs, we know that we’re on the right track,” CredPal CEO and co-founder, Fehintolu Olaogun said.
Launched in 2018 by Fehintolu Olaogun and Olorunfemi Jegede, with the goal of offering point-of-sale consumer credit to both low and middle-class income earners in Nigeria, the fintech startup has gathered success over the years.
The startup was among the winners of the Visa Everywhere Initiative for Sub-Saharan Africa and also won the Bill and Melinda Gates Foundation-backed EFInA Grant. It is also an alumnus of the YCombinator accelerator program in San Francisco.
“We’re building the American Express of Africa, and our goal is to make credit cards mainstream across Africa as is obtainable in the United States and other advanced economies. ‘’ Olaogun said
With this funding, the growing market demand for consumer credit, and our recent product launch to solve these needs, we know that we’re on the right track,” he added.